Morning Report

The pair was able to reach the previously breached descending channel's resistance, while continuing to fluctuate around this level that has currently descended to 1.3000. We expect more bearish intraday direction due to the effect of the breach of critical support levels ending with 1.3080; however, momentum indicators could push to retest this last level before heading towards technical targets that are chiefly around 1.2800. Note that the breach of 1.3080 holds the ability to cause the suggested scenario to fail, keeping in mind the importance of maintaining caution throughout intraday trading, according the awaited Nonfarm payroll from the US.

The trading range for today is among the key support at 1.2800 and the key resistance at 1.3080.

The short term trend is to the upside as far as 1.2795 remains intact with targets at 1.5135.

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Weekly Report

RecommendationBased on the charts and explanations above our opinion is selling the pair around 1.3080 targeting 1.2915 and stop loss above 1.3200, might be appropriate.